First Abu Dhabi BankFirst Abu Dhabi Bank P.J.S.C
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The fear of the unknown and financial loss is one of the biggest factors that discourage a lot of people from investing. If your knowledge about investing is limited, it can feel like an impossible task to get started. To put your mind at ease and concerns to rest, we have outlined a few steps you can take to break the cycle of investment fear.
If your long-term financial strategy is to put away all your earnings into a savings account, hoping for it to grow and secure your future, you need to think again. Most people are afraid to invest as they fear the risk of losing their money. The truth is that you already risk losing money if you keep it in a savings account for long periods of time because it gets depleted by inflation.
Inflation is the rate at which the price of everyday goods and services changes, and often increases, over time. Inflation doesn’t only impact your savings; it affects how much you can afford in the future because it weakens your money’s purchasing power over time. With inflation rising so sharply, planning your finances and retirement is more crucial than ever. One of the proven ways to beat inflation is to invest your savings for a better return, keeping in mind your risk tolerance of course.
*Disclaimer: All the information / options provided by FAB are for the purposes of the customers’ informed decision making and will not be deemed as a specific advice or recommendation.
As a cautious investor, you are willing to accept very small sporadic losses, with your primary focus being capital preservation but also generating slightly higher returns.
As a moderately-cautious risk investor, your financial strategy is that you are willing to accept some moderate losses in capital, on occasion, but maintain a balanced approach by evening it out with conservative and low-risk assets. If this sounds like you, we have a few insights for you to consider.
As a moderate-risk investor, you are seeking long-term growth of your wealth, apart from your income. You have a mindset where you are more open to accepting more significant losses in the short-term considering your focus on the long-term returns. Let’s consider a few insights that align with your financial strategy.